PayPal is one of the most popular and widely used payment methods. It is a very simple and affordable payment tool, but it has some limitations when opening an account. Let’s find out more about how PayPal works and, among other things, how old you should be to start using PayPal.
The use of PayPal is widespread. This payment method is used to pay for purchases and to receive money from sales or send money to third persons. The advantages of using this service are many, and it has no major limitations as it is very easy to use.
How to use PayPal?
PayPal has a free service. We do not have to pay anything to open an account. The purchases or money transfers that we will make will be made against our PayPal balance.
The application works mean that debit or credit cards and even bank information can be managed and stored. After opening the account, you must associate your credit or debit card or bank information through which you can top up the balance in PayPal.
The security of your bank or credit card information is maximum. In no case is it compromised in the payments or transactions you make, as PayPal will always be the intermediary.
PayPal offers two types of accounts:
- The personal account: this is the one commonly used. It allows you to make purchases and payments and receive or send money. In this model, you can send money to other users or to merchants where you make purchases or payments. Also, if you receive payments, you can send your money to your cards or bank account.
- The business account: This is a PayPal account intended for business purposes. This method is usually chosen for people who will make sales but can also be used to collect donations. Registration must be in the name of the business.
It is possible to switch between the two types of accounts. However, switching to a commercial account implies that you are doing business, with all this may entail for tax purposes, etc.
Are there limitations to using PayPal?
PayPal may apply certain limitations to its use. For example, it may limit the amount of money we can withdraw from our accounts. It may also apply delays to withdrawals to check whether they have been made with the appropriate authorization. This often occurs when there are product returns, bank returns, or disputes between buyer and seller.
On the other hand, it is also possible that PayPal limits an account because payment is whithheld or the account has a negative balance. To remedy this, you must initiate the withdrawal again after removing the limitation or negative balance cancellation.
It is important to note that PayPal provides a lot of information quite clearly in the user section as soon as you log in. When it comes to removing a limitation, simply by logging in, the system automatically warns you of the situation and suggests how to resolve it. You will likely be asked to verify your bank account or cards to resolve such problems.
How old do you have to be to open a PayPal account?
According to the company itself, the appropriate age to open a PayPal account is 18 years old. That is to say; it is not possible to legally open an account with this payment service before that age.
In the case of the United States, the PayPal user agreement reads as follows: “If you are an individual, you must be a resident of the United States or one of its territories and be at least 18 years old. You must also be of legal age in your state of residence to open a U.S. PayPal account to use the PayPal Services”.
As you can guess, the limitation to be at least 18 years old has to do with the legal nature of the contract you sign when you register with PayPal. If you are not over that age, you are not authorized by law to sign a tying contract such as this financial service.
What happens if I open a PayPal account when I am under 18?
Firstly, PayPal can unilaterally break the agreement with the user if it is confirmed that the user is a minor. This even means that deposited balances can be frozen.
So, by opening an account with PayPal when you are under 18, you expose yourself to not receiving the services, having your account closed overnight without warning, the platform taking legal action against you, etc.